Metals Focus Calls Peak Silver

Mineweb reported that research consultancy Metals Focus believes that silver production may have peaked in 2014.

As quoted in the market news:

Indeed, as with gold, the weakness in the silver price is at last beginning to have an impact on global mine production and Metals Focus sees mine output flattening out after several years of fairly strong production growth. As the consultancy points out the mining cycle is such that new mine decisions are largely taken when prices are high, but that it may take several years to bring a big new mine into production and by the time it comes on stream the price situation may have changed dramatically. The silver price has been falling for the past three years and is now around 65% below its 2011 peak which leaves many silver producers now sitting on all-in sustaining costs (AISC) levels close to, or even higher than the value of sales. With no real price respite in sight this will undoubtedly lead to new projects being curtailed and possible mine cutbacks and closures – indeed this is already beginning to happen.

Click here to read the full Mineweb report.